AHG to buy Scott’s Refrigerated and JAT


AHG plans to create largest refrigerated carrier in Australia with the purchase of Scott’s Refrigerated Freightways and JAT Refrigerated Road Services.

AHG to buy Scott’s Refrigerated and JAT
Scott's existing management team will remain in place when AHG takes over the company.

 

Automotive Holdings Group (AHG) has confirmed it will buy refrigerated transport businesses Scott’s Refrigerated Freightways (SFR) and JAT Refrigerated Road Services.

The automotive retailer and refrigerated food transport and warehousing provider announced today it will buy the two companies for $116 million.

SRF and JAT are forecast to generate about $237 million in revenue this financial year.

"The acquisition of SRF and JAT will create the largest temperature controlled carrier in Australia," AHG Managing Director Bronte Howson says.

"SRF and JAT are trusted service providers with strong relationships that will diversify our existing business and expand our customer service offering."

AHG expects to achieve about $4 million annually in cost synergies by the end of the 2016 financial year from the rationalisation of cold storage facilities in Perth, Adelaide and Melbourne.

SRF’s management team will continue overseeing the company’s business, SRF Managing Director Bruce Scott says.

"The combination of SFR and AHG represents an attractive proposition for customers with a national network and the scale to invest in growing the business and I am excited by the opportunity to manage this business within the Automotive Holdings Group," Scott says.

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